$XRP XRP relies on Bitcoin
Since March, the rate of new address additions for XRP has significantly decreased, indicating a declining interest from new investors. Just over 4,000 new addresses are added daily, and the growth of XRP is slowing down. This reflects the overall uncertainty in the market, where investors are hesitant to invest in an asset without clear direction.
The recovery has been weaker than expected, and the overall sentiment around XRP remains sluggish. The lack of significant interest from new investors can be attributed to the prolonged downtrend of the past month.
Currently, XRP has a strong correlation with Bitcoin at 0.86, which could be beneficial for the altcoin. If Bitcoin continues to rise to $110,000, XRP may benefit from this momentum.
If Bitcoin maintains a bullish trend, XRP may also revive, as it typically mirrors BTC's price dynamics. This strong correlation could provide some relief to XRP holders.
The price of XRP is striving for recovery
At the time of writing, XRP is trading at $2.16, holding above the support of $2.13. This level has helped avoid further declines, and it is likely that XRP will consolidate above it. The next resistance at $2.23 may limit short-term gains if it is not broken.
If Bitcoin continues to rise, XRP may break the resistance at $2.23, opening the way for further growth. This will allow the altcoin to challenge the barrier of $2.27, which was previously a strong resistance.
Sustainable growth could push XRP to higher levels, depending on market conditions.
However, if market conditions do not improve, XRP may drop below the support at $2.13. In this case, the price could fall to $2.08, repeating the recent decline. A drop below this level would indicate further weakness in XRP and could trigger additional sell-offs among investors.